EVENTS | VIEW CALENDAR
J&J could shed sterilization products division
Johnson & Johnson (J&J) may be shopping around its sterilization products division, with an asking price potentially as high as $2 billion. Bloomberg reports J&J is actively working with an advisor to solicit bids for the business unit.
The potential sale of the division is drawing interest from strategic buyers and private equity companies, according to the report. Bids for the division could come in by the end of this week, the sources told Bloomberg. J&J would not confirm that it was exploring a sale of its sterilization products division. No final decision has been made, and J&J may not sell off its division, the report notes.
Like several biopharma companies, J&J has been in the process of streamlining its divisions, which includes the sale of non-core assets. The advanced sterilization products unit, which goes by the acronym ASP, develops instrument sterilization, high-level disinfection, and cleaning technologies to help health-care facilities. Its product portfolio includes the Sterrad systems, which is used to sterilize medical instruments, as well as the Evotech endoscope cleaner.
Other J&J divisions which could be sold include its over-the-counter business, diabetes-care unit and medical devices unit, Bloomberg points out. In September, HRA Pharma acquired J&J’s Compeed division. That division manufactured lip-balms and blister-care treatments.
While J&J’s medical devices unit could potentially be considered for a sale, the business unit is still conducting business. A few days ago, the Johnson & Johnson Medical Devices division acquired Orthotaxy, a privately-held developer of software-enabled surgery technologies. Orthotaxy’s product line includes a differentiated robotic-assisted surgery solution. The robotic surgery tool is currently in development for total and partial knee replacement. J&J said it intends to broaden the device’s application for a range of orthopedic surgery procedures.
Despite the possible sale of non-core assets, J&J’s pharmaceutical division Janssen Pharmaceuticals has been proactive in deal-making. Earlier this month the company struck a deal with Theravance Biopharma to develop a drug for inflammatory bowel diseases. Janssen will fork over $100 million upfront, but Theravance could earn more than $1 billion after all milestones and other factors are added to the deal. Janssen also scored approval of Erleada, the first FDA-approved treatment for patients with non-metastatic castration-resistant prostate cancer.